India to Propose BRICS Digital Currency Linkage
New Delhi aims to advance the interoperability of central bank digital currencies among BRICS members during the September 2026 summit.
India plans to place the linkage of BRICS central bank digital currencies on the agenda for the September 2026 summit. The goal is to simplify cross-border payments between member states. This move follows a 2025 declaration in Rio de Janeiro that called for payment system interoperability.
Two sources familiar with the discussions confirmed the proposal may be discussed by leaders. They noted that limited global adoption of such currencies complicates the launch of a joint system. India’s Ministry of External Affairs and the Reserve Bank of India did not respond to requests for comment.
Political Tensions Hinder Progress
Previous negotiations on joint payment mechanisms have yielded little progress. Integrating financial infrastructure across diverse economic models remains difficult. The United Arab Emirates has severed financial ties with Iran, complicating a unified payment environment.
India is cautious about deepening financial ties with China. Linking digital currencies requires a higher level of mutual trust. New Delhi recently suspended consideration of Alipay+’s proposal to connect to its instant payment system due to security concerns.
Technical and Economic Barriers
Currency swap agreements may be necessary before the joint system can operate. These agreements would help address trade imbalances among BRICS countries. They would also reduce risks during mutual settlements.
Brazil previously proposed a common BRICS currency, but the plan did not advance. U.S. President Donald Trump warned of high tariffs for countries moving away from the dollar. India is not seeking to replace the dollar but aims to make payments faster and more efficient.
Summit Context and Members
India is chairing BRICS this year. Leaders are due to meet in New Delhi on September 12–13, 2026. The group comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates.
The proposal highlights deep divisions over trust and financial sovereignty. Sources cited by GN markets/fx (en-US) indicate the issue is sensitive. Implementation faces both political and technical obstacles that could limit its scope.
